Core Insights - The recent market dynamics have been labeled as the "debasement trade," driven by concerns over budget deficits, high inflation, and the declining dominance of the US dollar [2][5]. Group 1: Market Dynamics - Investors are increasingly purchasing hard assets such as gold, silver, and cryptocurrencies, which are perceived as beneficiaries of a weakening dollar and persistent inflation [3]. - The selling side of the debasement trade includes a decline in currencies and government debt, particularly noted in Japan with the yen and sovereign bonds selling off due to political changes [4]. - Central bank stimulus globally is reinforcing the debasement narrative, as low interest rates and money printing raise inflation concerns [5]. Group 2: Inflation and Interest Rates - Rising inflation may lead to rate hikes, which could heighten concerns over sovereign debt, although the sell side of the debasement trade is not as pronounced in the US, where Treasurys have been rallying [6].

NEW YORK (Reuters) - Foreign holdings of US Treasurys rose to an all-time peak in July, data from the Treasury Department showed on Thursday, hitting record highs for a third straight month, led by gains in holdings from Japan and the United Kingdom. Holdings of US Treasurys surged to $9.159 trillion in July, up from $9.126 trillion the previous month. Compared with a year earlier, Treasuries owned by foreigners were up nearly 9%. China's holdings of Treasurys, on the other hand, dropped to $730.7 billio ...

US stock futures climbed on Tuesday after the Senate confirmed President Trump's pick, Stephen Miran, as a Federal Reserve board governor, following another record-setting day on Wall Street. Futures attached to the Dow Jones Industrial Average (YM=F) rose just above the flatline, the benchmark S&P 500 (ES=F) edged higher 0.1%, and the tech-heavy Nasdaq 100 (NQ=F) rose 0.2%. The Senate narrowly confirmed Stephen Miran, President Trump's Fed pick , in a 48-47 vote Monday, a day before the central bank's ...